A joint venture that includes Hines Real Estate Interests LP and restaurateur-developer Lawrence Levy is moving ahead with plans to put on the market 1 S. Dearborn St., a new skyscraper expected to fetch a sky-high price.
The venture has hired Holliday Fenoglio Fowler LP to market the 828,500-square-foot tower, including retail space, a move expected since October, sources said.
Anchored by law firm Sidley Austin Brown & Wood LLP, the tower is 90 percent leased and is expected to sell for well over $400 a square foot, or more than $330 million.
Other tenants in the 40-story building include the North American headquarters of Mittal Steel Co. NV and liquor distributor Barton Inc., a unit of beverage giant Constellation Brands Inc.
Hines executives declined to comment.
Zoning law revision: The Chicago City Council Zoning Committee on Wednesday approved an amended version of an ordinance, introduced by Ald. Burton Natarus (42nd), that would eliminate the long-standing requirement that all property owners within a planned development agree to a significant rezoning.
The Planning Department has not taken a position on the change, a spokeswoman said.
The Natarus proposal would apply to all planned developments but apparently was prompted by opposition to a zoning change for a parcel at 351 N. Clark St., where Mesirow Financial proposes an office building it would co-anchor. The site is controlled by prominent River North developer Albert Friedman.
James Tyree, the financial-services firm’s chairman and chief executive, declined to comment.
The dispute over the Mesirow building highlights the fact that the consent requirement is outdated, Natarus said. Many planned developments have multiple owners, and one owner shouldn’t control another’s proposed zoning change,
“They can be opposed to it, but they can’t veto it,” he said.
Changing the rules for planned developments is fair because “one of the unique features of the planned development is it can be changed with time and [changing] conditions,” he said.
Contract on building: A venture that includes Carnegie Realty Partners LLC had a contract to buy the Clark-Adams Building, 105 W. Adams St., for $50 million, sources said.
John Thomas, the firm’s CEO, said the venture has about two weeks before it has to make a non-refundable deposit.
Restaurant lease: Chef Kevin Shikami and his partner/brother Alan, who have been looking for new restaurant opportunities, have signed a 15-year lease at 190 S. LaSalle St., where the duo plan a new concept different from their trendy French-Asian eatery at 9 W. Hubbard St.
The new 6,000-square-foot restaurant will have a separate entrance on Adams Street, said Mark Gunderson, a senior vice president with Jones Lang LaSalle Inc., which manages the Central Loop tower. Stone Real Estate Corp. handles retail leasing for the building.
Meanwhile, newly formed investment firm Hillenbrand Partners LLC has signed a 10-year lease for the 39th floor, nearly 20,000 square feet.
Teng staying put: Teng & Associates Inc. has extended its lease for nearly 67,600 square feet at 205 N. Michigan Ave until 2017, forgoing an early termination option, said Mark Buth, senior vice president with MB Real Estate Services LLC, which manages the building for New York’s Loeb Partners Realty LLC.
As a result of the deal, Teng is cutting its overall real estate costs by 20 percent, said Laurence Morgan, executive vice president with tenant representative Studley Inc., which advised the Chicago company.
Viskase to Darien: Viskase Cos. is moving its headquarters to 8205 Cass Ave. in Darien, leasing 22,000 square feet of space, said Howard Wedren, principal with Montero Partners Ltd., which represented the hot dog casing manufacturer.
Meanwhile, Turtle Wax Inc. has subleased Viskase’s former headquarters, a 41,600-square-foot building at 625 Willowbrook Centre Parkway in Willowbrook, moving from Bedford Park, he said.
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tcorfman@tribune.com
